DMA: Google faces hefty EU fine over Play Store

Alphabet subsidiary Google continues to be under pressure in the EU over its Play Store: As the news agency Reuters reports, citing sources familiar with the matter, the company could face a hefty fine if it does not do more to "comply with EU regulations to ensure fair access and competition" in its in-house marketplace for Android.

Play Store in EU's focus since March

The Google Play Store has been in the focus of the European Commission since March of this year. The regulatory authority is primarily complaining about technical restrictions that are intended to prevent app developers from directing users to other channels with more favorable offers. Another problem seen is the service fee that Google charges app developers for mediating new customers via the Play Store, but which, in the opinion of the regulatory authority, goes beyond what is justified.

In August, Google announced some changes to Google Play to avert potential DMA penalties from the EU. Among other things, these adjustments provide that app developers could more easily direct customers to other channels to make purchases via alternative payment options. In addition, the change comes with a new fee structure. Specifically, transaction fees for developers will decrease from 10 to 3 percent if they use alternative payment methods.

However, these adjustments apparently were still not enough. According to Reuters, the EU antitrust authority sees Apple's latest changes to its App Store, made in June, as a benchmark. Apple was forced to overhaul its App Store again after being hit with a €500 million fine. The company was accused by the EU of preventing app developers from informing customers about more favorable offers outside the platform through technical and commercial restrictions.

According to Reuters sources, Google has until the first quarter of 2026 to offer further changes before regulators impose a fine. However, the timing of sanctions could still change. According to the DMA, penalties can amount to up to 10 percent of global annual revenue, which would be several billion euros for Alphabet.

A Google spokesperson told Reuters: "We continue to work closely with the European Commission in its ongoing investigation but have serious concerns that further changes would put Android and Play users at risk of malware, scams and data theft. Unlike iOS, Android is already open by design."

Dispute with the USA could escalate further

Reuters speculates that a hefty fine against Google could intensify the existing tensions between the EU and the United States. This is because the US claims that a series of recently passed EU laws are targeting US technology companies. While the EU rejects the criticism, it has found its way into Washington's national strategy document published a few days ago. There was a recent clash between the EU and the US in early December. The EU had imposed a million-euro fine on Musk's company X for violations of the Digital Services Act (DSA). So far, the EU has been rather unimpressed by threats from the US.

(afl)